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Can the developer amend the sale purchase agreement unilaterally?

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Staff Writer, TLR

Published on July 14, 2023, 17:41:00

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The UAE Civil Transactions Law Article 267 says that no party can revoke, modify or rescind a contract, except by mutual consent or court order. 

The developer does not have the right to amend the Sale and Purchase Agreement (SPA) unilaterally unless by a mutual agreement of such amendment. In a valid and binding contract, none of the contracting parties may revoke, modify or rescind it, except by mutual consent, order of the court, or a provision of the law.

In general, any party in bilateral contracts has the right to request for cancellation, however, the termination can only be finalised after an order of the Court.
Article 272 of the same law states that - 
In bilateral contracts, if one of the parties does not perform his contractual obligations, the other party may, after serving a formal notification to the debtor, demand the performance of the contract or its rescission. The court will decide whether the developer is late or not in the implementation of his contractual obligations, and whether this delay exceeds the limits to the extent that leads the buyer to request the termination of the contract, or not.

The SPA is a legally binding contract that will define the terms of an agreed-upon real estate transaction. Real estate contracts need to be amended for unforeseen reasons. 

A standard amendment to the SPA might include information concerning changes or additions in price, date of delivery, inspection requirements, financing conditions, title policy provisions, etc. 

The amendment can be drafted to meet your specific needs for your deal. Typically, you would have an attorney draft up an amendment if it's not already included in the original SPA document. Once the amendment to a purchase and sale agreement is drafted, it will be signed by both parties to become legally binding.

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